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maddogs

09/12/07 9:17 AM

#11717 RE: Nebulae #11716

"Would the psychological factors including fear of change, market loss, and loss of competitive advantage along with potential entry price prohibitions cause difficulty for those trying to enter the market and if so, what is necessary to overcome this potential obstacle."
To fully understand the Electrosurgical Disposible buisness model, one should look at Tyco, Ethicon and most definitly Grus/Amci. The 10 filings will reflect a great deal. For example, Tyco has over 15,000 generator sets( gen. set) in the market. They show year on year rev returns reflecting 10% from generators and 90% rev on tool/accessories(remember this # division,90/10). This is how theElectrosurgical "Disposible Tool" buisness model creates such a high return to these companies for that section or division of said company.
The Gen. sets themselves are put in place under numerous financial arraingments, even with a company as large as Tyco.
Each Doctor, clinic or hospital has their own prefrence for dealing with major medical tool puchase. Some rent, rent with option, lease, lease w/option, all with different choice of term lenghts and interest based on qualifications, or outright
purchase. Relative low cost up front. So much for initial costs.
As for as market resistance, these aforementioned companies and others have already "broken down the door" in regards to Electrosurgical. In fact, by a large percentage, their tools are of an ablatiive nature,ie; destructive/removal of tissue.
This is where Ctum's LTC "gen. set" fills the gap so to speak.